The Phoenix Mills Limited has informed the Exchange regarding a press release dated July 24, 2025, titled " The Phoenix Mills Limited to facilitate exit of CPP Investments from Island Star Mall Developers Private Limited .".
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The Phoenix Mills Limited (PML) has approved buying out Canada Pension Plan Investment Board's (CPP Investments) 49% stake in its material subsidiary Island Star Mall Developers Private Limited (ISMDPL) for approximately Rs. 5,449 crores. Post-transaction, PML's ownership will rise from 51% to 100%, making ISMDPL a wholly-owned subsidiary. The consideration will be paid over 36 months in four tranches through a mix of buyback, capital reduction, dividend payout by ISMDPL, and/or secondary purchase by PML or its affiliates. The deal is subject to shareholder approval, CCI clearance, and other regulatory approvals. ISMDPL operates four marquee malls (Phoenix MarketCity Bangalore, Phoenix Citadel Indore, Phoenix Mall of the Millennium Pune, Phoenix Mall of Asia Bengaluru) totalling ~4.4 million sq ft of retail space and reported Rs. 617 crores EBITDA in FY25. Morgan Stanley India acted as financial advisor and Bansi S. Mehta Valuers LLP was the independent valuer.
The consolidation is expected to be earnings-accretive from year one and largely funded through ISMDPL-level internal accruals and incremental leverage, with no material impact on PML's group balance sheet strength. Shareholders gain full upside from a growing retail-led platform that will expand to over 5.2 msft retail, 4 msft offices, and 2-3 hotels (~1,000 keys) by 2026-27, though the Rs. 5,449 crore phased payout represents significant capital deployment.